Particle.news

Japan Sets Up Panel to Tackle Postal Service Deficits

The ministry will weigh service cuts such as fewer mailboxes and reduced delivery frequency as it seeks options to make operations sustainable.

Overview

  • The ministry convened a working group on Wednesday, August 26, to begin formal talks on stabilizing the postal business after recent losses.
  • Officials told the panel that the postal business recorded a ¥32.2 billion operating loss in fiscal 2025 and that deficits are expected to widen from fiscal 2026 onward.
  • The ministry highlighted a sharp drop in mail volume and a rigid cost structure in which personnel costs account for more than 70 percent of expenses.
  • Panel members raised the need for structural reform and are examining concrete measures including cutting the number of public mailboxes and lowering delivery frequency.
  • The working group aims to present a package of options by next summer and will assess how changes could affect access for residents, especially in rural areas, and the postal group’s reliance on cross-subsidies and government support.